If you've ever tried to get a straight answer on what a business phone system costs, you know how frustrating it is. Many provider websites say "contact us for pricing" or show a "starting at" number that leaves out most of your actual bill.
This guide breaks down what goes into a small business phone bill in 2026: the monthly service, calling and number charges, hardware and setup, and how to compare providers on the complete total.
The Two Pricing Models: Per-User vs. System-Based
Most providers use one of two pricing models. Understanding the difference matters more than any promotional discount.
Per-User Pricing
Many VoIP providers charge a monthly fee for each person on the system. The math is simple, and it grows with your team. Here is how illustrative per-user prices add up (example prices, not any specific provider's current rates):
| Team Size | $20/user/mo | $30/user/mo | $45/user/mo |
|---|---|---|---|
| 5 users | $100/mo | $150/mo | $225/mo |
| 10 users | $200/mo | $300/mo | $450/mo |
| 20 users | $400/mo | $600/mo | $900/mo |
| 50 users | $1,000/mo | $1,500/mo | $2,250/mo |
Advertised prices are often for an entry tier. Check which tier includes the features you need, such as call recording or an auto-attendant, and price that tier for your whole team.
System-Based Pricing
Some providers charge for the phone system rather than for each person, usually in tiers based on system size. Adding a person within your tier doesn't add a charge; moving into a larger tier does.
PJL Telecom uses system-based pricing. Business systems start at $125/month for up to 10 phones and users, plus calling and number usage. The base rate is $175 for 11 to 25, $250 for 26 to 50 and $375 for 51 to 100, and larger systems are quoted individually. Auto-attendants, ring groups, call queues and call recording are part of every business tier. There are no per-user fees.
How to Compare the Complete Bill
The base price is only one line. For a 10-person team, here is what to add up from any provider, next to how each line works at PJL:
| Cost Category | What to ask a per-user provider | PJL Telecom (10 phones and users) |
|---|---|---|
| Monthly service | Per-user price × 10, at the tier with the features you need | $125/mo system base rate |
| Features | Which features need a higher tier or an add-on? | Auto-attendant, queues, ring groups and recording included; optional add-ons priced separately |
| Calling | Are minutes included? What are overage rates? | Billed at actual usage, monthly in arrears |
| Numbers and E911 | What do numbers and E911 records cost? | $1/mo per local number, $0.50/mo per E911 location record |
| Taxes and regulatory fees | Which taxes and fees are added to the invoice? | Passed through at cost for your service address |
| Setup and porting | Are there one-time setup or porting fees? | Standard setup and porting included at no charge |
Fill in each row for your actual team and usage, then compare the totals. If you're growing, run the numbers again at the team size you expect next year.
Charges to Ask About
The advertised price is rarely the whole bill. Ask every provider about these:
- Regulatory recovery fees. Ask whether a fee is a government tax or a provider surcharge, and how much it is per line.
- E911 charges. Ask what is charged per line or per location.
- Number porting fees. Ask whether bringing your existing numbers costs anything.
- Call recording storage. Ask how long recordings are kept and whether longer retention costs extra.
- Feature add-ons. Ask whether the auto-attendant, call queues, analytics or integrations need a higher tier or an add-on.
- Overage charges. Ask whether an "unlimited" plan has usage limits.
- Early termination fees. Ask what leaving before the end of a term costs.
Red flag: If a provider won't put the expected monthly cost in writing before you sign, be careful. A "starting at" price is not your bill.
Hardware Costs
The phone service is only part of the equation. Here are the hardware options:
Option 1: Softphones Only
Use apps on your computers and mobile devices. No hardware is needed, which works well for remote teams and staff who are at their computers all day.
Option 2: IP Desk Phones
IP desk phones range from basic models to executive phones with color displays. PJL is a Grandstream Certified Reseller; see current models and prices in our hardware store. Hardware is quoted separately from the phone system.
Option 3: Bring Your Own Phones
If you already have SIP-compatible IP phones, many providers can configure them. Compatibility depends on the model and firmware, so check first. At PJL, remote provisioning of a customer-supplied phone is $10 per device.
Want an Itemized Estimate?
Tell us your team size and see the base rate, calling and number charges and any one-time costs. We'll confirm the details in a written quote.
Get a Custom QuoteSetup and Installation Costs
Setup varies widely by provider:
- Self-service setup. You configure the system and phones yourself from a setup guide.
- Paid installation. Some providers charge for remote or on-site setup.
- Managed setup. The provider configures the system, sets up phones, programs the auto-attendant and coordinates porting. Ask whether this is included or charged separately.
At PJL Telecom, standard onboarding (system setup, number porting, standard menus and E911 records) is included at no charge. Specialized work, such as remote training sessions or custom builds, is priced up front.
What About On-Premise vs. Cloud?
If someone is quoting you an on-premise PBX (a physical server in your office), the cost includes more than the monthly line:
- Server hardware purchased upfront
- Software licenses and any annual maintenance
- IT time to manage and secure the server
- Hardware replacement every several years
For many small businesses, a cloud-hosted system avoids maintaining hardware on site and lets you manage the system from anywhere. If you already own a PBX that works, ask what keeping it would cost before replacing it.
The Bottom Line
What PJL Costs, and How to Compare
- Solo / home office: PJL's Home Office plan is $25/month. Check the order summary for calling, number and tax charges.
- Up to 10 phones and users: $125/month base rate, plus calling and number usage.
- 11 to 25: $175/month. 26 to 50: $250/month. 51 to 100: $375/month. All plus usage.
- Per-user providers: price per user × team size at the tier you need, plus their calling, number and tax charges.
- Hardware: quoted separately, or reuse compatible phones.
The pricing model is one of the biggest factors in your phone bill. With per-user pricing, every new hire adds a monthly charge. With system-based pricing, the base rate changes only when your system moves into a larger size tier.
See our pricing page for the tiers and published add-on prices, or get a custom quote to see an itemized estimate for your business.
Frequently Asked Questions
How much does a VoIP phone system cost for a small business?
It depends on the pricing model, team size and usage. With per-user pricing, multiply the per-user price at the tier you need by the number of people. With PJL's system-based pricing, a business system starts at $125/month for up to 10 phones and users, plus calling and number usage. In both cases, add calling, numbers, taxes and any add-ons.
What charges should I ask a VoIP provider about?
Ask about regulatory recovery fees, E911 charges, per-number fees, number porting fees, call recording storage, setup or activation fees, early termination fees, and which features require a higher tier or an add-on. Ask for the expected total monthly cost in writing.
Is per-user VoIP pricing or system-based pricing cheaper?
It depends on your team size and the features you need. For one or two people, per-user plans can be competitive. As the team grows, a per-user bill grows with it, while a system-based rate changes only when the system moves into a larger size tier. Compare the complete monthly bill for your own team.
Do I need to buy new phones for a VoIP system?
Not always. Softphone apps on computers and mobile devices let you start without hardware, and many SIP-compatible phones can be reused. If you want desk phones, see current models and prices in our hardware store.
Are there setup fees for a VoIP business phone system?
It depends on the provider, so ask what is included. At PJL, standard onboarding (system setup, number porting, standard menus and E911 records) is included at no charge. Specialized work, such as training sessions or custom builds, is priced up front.